Laser Powerhouse NUBURU Struggles To Keep Its IPO Status

Recently, the U.S. industrial blue laser manufacturer NUBURU announced its 1:40 reverse stock split plan on July 23, 2024 implementation. This plan may become NUBURU's future "talisman".
It is understood that the reverse split will become effective after the close of trading on July 23, and the common stock will begin trading on July 24 on a split-adjusted basis under the company's existing trading symbol, "BURU". The shares of common stock associated with the Reverse Stock Split will be assigned a new CUSIP number 67021W301.
A reverse stock split, also known as an "inverse stock split," occurs when a company reduces the number of outstanding shares by a certain percentage in order to increase the nominal price per share while maintaining the same percentage of shares held by shareholders so that there is no direct financial loss to shareholders.
A ratio of 1:40 means that every 40 existing shares will be consolidated into 1 new share. In essence, NUBURU implemented this plan simply because its share price was too low, and by increasing the nominal price per share through the reverse split, it was able to increase the company's market capitalization and prevent NUBURU from being delisted from the stock exchange due to its low share price.
The reason that forced NUBURU to choose to implement the reverse stock split program to "survive" started with a notice issued by the New York Stock Exchange.
On January 4, 2024, NUBURU announced that on December 28, 2023, it had received a disqualification letter from the NYSE. Specifically, the NYSE, for its part, determined that the selling price per share of NUBURU's common stock had been low for a significant period of time and did not qualify for continued listing.
The wiggle room is that NUBURU, for its part, must ensure that it achieves a sustained increase in its share price by June 28 of this year. But for the troubled NUBURU, this is clearly an unattainable goal. NUBURU is well aware of this, and has indicated that if it fails to reach the required level by the specified date, it will consider various options, including a reverse stock split, which has now come true.
By June 13, 2024, before the date of the notice, NUBURU's share price had fallen to $0.10 per share, a situation that led directly to the NYSE's determination that it did not meet its listing standards and the initiation of delisting proceedings. Immediately thereafter, NUBURU took swift legal action by filing a formal lawsuit with the New York Stock Exchange in this regard, while its common stock will continue to trade on the over-the-counter (OTC) market under the ticker symbol "BURU" to ensure that the continuity of market activity is not affected.
In response, NUBURU's CEO has repeatedly stated that the company is trying its best to change the status quo, but is still unable to get out of the predicament. In fact, NUBURU did.
Between the time it received the delisting warning and the time it was initiated into the delisting process, NUBURU made several positive announcements in an attempt to salvage its "rocky fate".
On April 4, 2024, NUBURU announced that it had received a $300 investment and had also received an order from a new energy vehicle battery manufacturer;
On May 6, 2024, NUBURU announced that it had been awarded an $850,000 Phase II contract by NASA to advance blue laser power transmission technology;
On May 15, 2024, NUBURU announced that it had received a purchase order from Blueacre Technology, a medical device manufacturer, to enter the medical device market;
On June 4, 2024, NUBURU's Japanese distributor, JLC, has installed a state-of-the-art NUBURU BL250 BlueScan system in Osaka for demonstrating micro-soldering and wire stripping to strategic electronics and medical device customers in the Japanese market as a means of expanding its presence in the Japanese market.
Also during this time NUBURU has continued to restructure its business and operations, optimize its workforce, and seek additional agreements including raising capital to repay some of its outstanding debt.
Obviously, order growth, the establishment of new financing, and market development were not enough to prevent NUBURU from being subject to the delisting process. To this end, NUBURU also decided on June 24, began to implement the reverse stock split plan, however, the implementation of the plan "delayed again and again", until now the official implementation. There may be another reason why NUBURU, which was founded in 2015, has come to this point.
In early 2023, NUBURU completed its IPO on the New York Stock Exchange with a special acquisition of SPAC, trading under the ticker symbol BURU, which valued NUBURU at about $350 million, with a price of $10 per share of common stock, but the actual capital raised was only $3 million, a far cry from the hundreds of millions of dollars it expected, even though it secured an additional $9 million from loan notes in June. .
However, in the three quarters of post-IPO results, NUBURU's net loss increased by 56.82 percent in the first quarter, to a whopping $6.1 million in the second quarter, and more than $5 million in the third quarter.
More outrageous is that as of the third quarter of 2023 NUBURU's balance sheet only 1.6 million dollars in cash. Caught in the financial "anxiety", NUBURU in November 2023 "hastily" completed a $5.5 million bridge financing.
Can NUBURU turn things around after the difficulties that have ensued, and whether it will be able to do so with its back against the wall?